Malaysian Prime Minister Anwar Ibrahim presented a record RM470 billion ($111.4 billion) budget for 2026, the largest in the country's history. The budget, themed "Fourth MADANI Budget: People’s Budget," focuses on operating and development expenditures, with significant allocations for infrastructure and targeted investments, while aiming to improve governance and curb corruption.
Key Numbers
RM470 billionTotal Budget 2026 allocation
RM419.2 billionOperating and development expenditure
RM338.2 billionOperating expenditure
RM81 billionDevelopment expenditure
RM30 billionGLIC investments
RM343.1 billionProjected government revenue for 2026
Who's Involved
Anwar Ibrahim
Prime Minister and Finance Minister of Malaysia
PwC Malaysia
deals partner, economics and policy
↳ Why This Matters
The record-sized budget signals the Malaysian government's commitment to economic development and social welfare, with a focus on infrastructure and targeted investments. The emphasis on improved governance and anti-corruption measures aims to enhance fiscal responsibility and public trust.
Key facts
Malaysia's Budget 2026 totals RM470 billion, the largest ever.
RM419.2 billion is allocated to operating and development expenditures.
RM338.2 billion is for operating expenditure and RM81 billion for development expenditure.
The budget theme is "Fourth MADANI Budget: People’s Budget."
The budget includes RM30 billion for government-linked investment companies, RM10 billion for public-private investments, and RM10.8 billion for statutory bodies and Ministry of Finance Inc companies.
Revenue in 2026 is projected to grow 2.7% to RM343.1 billion, mainly from tax revenue.
Prime Minister Anwar Ibrahim unveiled Malaysia's largest-ever budget, totaling RM470 billion ($111.4 billion), for 2026. The budget, themed "Fourth MADANI Budget: People’s Budget," allocates RM419.2 billion to operating and development expenditures, with RM338.2 billion for daily running costs and RM81 billion for long-term assets like infrastructure. This figure excludes RM30 billion for government-linked investment companies, RM10 billion for public-private investments, and RM10.8 billion for statutory bodies and Ministry of Finance Inc companies, which contribute to the overall RM470 billion figure.
Anwar stated that the budget aims to support growth momentum through an expanding fiscal policy while maintaining commitment to the Public Finance and Fiscal Responsibility Act. He emphasized improving governance and targeting subsidies without increasing the national debt burden, citing measures to eradicate corruption, curb smuggling, and dismantle cartels. Revenue in 2026 is projected to increase by 2.7% to RM343.1 billion, primarily from tax revenue.
Analysts noted that the budget balances fiscal responsibility with real-economy impact, aligning with Anwar's long-term plans and the Madani framework. Key spending areas include economic and social infrastructure in lagging regions and targeted investments in high-growth sectors. The Borneo states of Sabah and Sarawak will receive the highest federal allocations for development, in line with the Malaysia Agreement 1963.
Frequently asked questions
The Madani framework is a slogan of the Anwar government, based on a Malay acronym representing sustainability, care and compassion, respect, innovation, prosperity, and trust. It also describes his unity government.
Operating expenditure covers the government's daily running costs, such as salaries and pension payments, while development expenditure refers to funds allocated to create long-term assets like infrastructure.
MA63 is a legal instrument signed in 1963 that formed the basis of Malaysia's federation, recognizing Sabah and Sarawak as equal partners with West Malaysia.
What Happens Next
01The government will continue to implement measures to eradicate corruption, curb smuggling, and dismantle cartels.
✉Newsletter
Pick the topics you care about. Get only what matters, on your cadence.
How It Developed
Prime Minister Anwar Ibrahim presented Malaysia's Budget 2026.
